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Tuesday, December 30, 2008

A successful business owner is always on the lookout for great product ideas and resources so that they are prepared for the constantly changing business world. One of the fundamentals of running any retail business is learning how to find products and suppliers of those products. When doing business online, dropshipping is an effective and relatively simple way to source products. This article will discuss what a dropshipper is and how dropshipping works, the pros and cons of using a dropshipper, and resources for finding and selecting a dropshipper or product source.

Discussion

A dropshipper is a wholesale supplier who sends products directly from their warehouse to your Internet customer for you, one product at a time. They pack and ship the products for you. You pay a wholesale price, and then charge your customer a retail price for the product. Some companies use "Blind" dropshipping - this means the dropshipper puts your label on the package, so that your customer believes the package comes directly from you. This is preferable, but certainly not necessary.

ConBecause you don't have the product sitting on your shelf, you may not always know the current availability, exact features, specifications, etc. for that product.

Shipping

ProYou don't require packing or shipping supplies, printing labels, making trips to the post office, etc…ConYou don't have absolute control over when the product will be shipped.

Returns

ProWhen a return is sent back to the dropshipper, all you need to do is credit your customer for the returnConYou don't have immediate access to the returned product, or you may not know when the returned product was received, and therefore may not know when to credit your customer.

Application

Resources for finding and selecting a Dropshipper or Product SourceFinding a dropshipper can be a fairly time-consuming process. However, using some of the information provided in this tutorial, you should be able to find a dropshipper or product source relatively quickly:

1.

Let people know you are looking for a product to sell on the Internet.

2.

Trade Shows and Expos can be excellent resources for products. Your local Chamber of Commerce or Visitors and Convention Bureau can provide information on upcoming events. www.tsnn.com has listings of local Trade shows and Expos.

3.

Use the yellow pages section of your phone book. Most categories will list any wholesalers or manufacturers in the area.

4.

If you have a specific product in mind you can usually get manufacturer contact information off the product packaging. Some products will provide complete contact information. Some products provide just partial information, which you could use to search for more complete information on the Internet.

5.

Search using the Internet. Using a search engine, type in various phrases to search for the product you want. For example, if the product you wish to sell is sunglasses, you would type phrases such as "sunglasses manufacturer," "sunglasses wholesale," and "sunglasses dropshipper" into the search bar. You will have to filter out many sites that are just selling sunglasses, but you may find a supplier. You could also look for suppliers in specific geographic areas by typing in phrases such as "dropshippers Singapore" or "wholesalers Canada" into the search bar.

6.

Another way to find suppliers on the Internet is to visit sites that list several suppliers. The following list contains directories of manufacturers, wholesalers, and dropshippers.

Note: These are simply ideas. Some of these resources may be free of charge, while others may charge for their information. All of these resources are subject to change and may or may not be accurate. Please ensure that you investigate all of your options before deciding on one dropshipper in particular.

Try to establish relationships with local businesses in your area that sell products of their own manufacture. Approach them about marketing their products online.

8.

Use a trade magazine. Some small suppliers are unwilling to pay to be listed in resources like the Thomas Register. These smaller suppliers often use alternative advertising, such as trade magazines. Trade magazines, or trade journals, are magazines that are subscribed to by companies and people in particular industries. Typically, there are one or more trade journals for each industry. These will publish advertisements from manufacturers of all sizes within that industry. Most trade journals will also have a website, so you may be able to find them online as well. These companion websites will typically be classified as Vertical Portals. You can search for these trade magazines online by typing keyword phrases with the words "trade magazine" or "trade journal" included in the phrase. Examples are "craft trade magazine" or "scuba trade journal." You may also be able to get the names of these trade magazines from companies that are in the industry. Contact companies you find in the Thomas Register or through other means and ask for names of the trade journals for their industry as well as contact information for them, if possible. Then contact the trade magazine and ask them to send you a sample issue or two. Most will be willing to send them to you, although you may need to pay a small shipping and handling fee.

Making ContactWhen you contact the company, tell them your name, your company name and where you found their information. Explain that you are interested in selling their product(s) on your website, and ask what information they need from you to get started.

Other questions to ask Once you have found a profitable supplier, there are other questions you should ask before deciding to go with them. Some examples are shown in the following section:

Dropshipping

Is dropshipping available?If so, is Blind Dropshipping an option?

Product Information

Do they have their product list in a data spreadsheet?Do they provide you with web ready product photos?

Payment Terms

How do you get billed, how do you pay them, and how often do you pay?

Pricing Rules

Are there minimum advertised prices?Are there certain times when you can lower prices?

Shipping Costs / Policies

What courier is used?Is insurance available? What delivery options are available?

Shipping Time

How long from the time you place an order with the dropshipper until the time it's shipped?

Returns

What are the return policies? Are returns sent to supplier or you? Are there any restocking fees?

This is just a short sampling of questions you would want to address with any supplier. Of course, your industry may require different questions, or other issues to be addressed. Keep in mind that you don't necessarily need a particular answer to any of these questions; you just need to know what the answers are, so that you can decide whether you want to work with this supplier.

Conclusion

Keep in mind that it's a good idea to have a backup supplier. Try to always have another supplier available, so that if something happens to your primary supplier, you'll be able to source your product elsewhere.

This process will become easier as your business grows. As you get more experience, you will be able to negotiate better opportunities and situations. This will occur partly because you will have an online "track record" for potential suppliers to see and partly because you will become more confident. A company that may not have been willing to dropship for you initially might change their mind once you have proven yourself. Don't give up on any great product ideas. Just keep looking for the right supplier and work on other ideas and sites until one comes through for you.

Platinum users have access to several integrated drop shippers. Additional drop shipper integrations will continue to be added. Below is a quick reference with some of the essential information about these drop shippers to help you find one that is right for you.https://secure.operationdropship.com/stores_pro

JewelrySprite.com™ is an American-owned jewelry company specializing in fine sterling silver jewelry which uses the Dell model of inventory to maximize supplies and product distribution. Also offers blind dropshippers with an integrated order and drop shipping system to make ordering and fast and easy.

XSDepot offers a huge selection of computer software and more in a wide range of categories.

Online since 1995, XSDepot has built substantive partnerships with manufacturers, publishers and distributors purchasing computer related products at low prices. With their drop shipping feature and fast turn-around time, you can sell quality products on the web at a profit - while they take care of your order fulfillment needs.

You have no excess merchandise to house between orders.

No hassle of calculating shipping, packaging orders, and doing your own shipping.

You don't have to have a warehouse or house expensive inventory.

Increase the number of products that you sell on your site without increasing your inventory.

Offers drop shipping for on-line resellers, eBay, and Amazon. All orders are blind dropshipped from their warehouse in Perrysburg Ohio with only your company information on the package. No minimum orders, no sign-up fees or dropship fees.

Green Supply Inc is a wholesale distributor of hunting supplies located in Vandalia, MO within a 20,000 square foot warehouse. Products offered from 150 manufacturers, including over 18,000 different items.

Sunday, November 30, 2008

Wednesday, December 12, 2007

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